We saw Windows 7's multi-touch capability way, way back in the day when Bill Gates was still at the wheel of Microsoft (uh hem, May). That demo was pretty limited to in-application touches and did little to show off the interaction with the OS and Internet browser -- the two places we find ourselves most often. Now we've finally got some video, brief as it is, that gives a better idea of what it might be like to work with arms out-stretched in front of you to manipulate icons and images on a desktop display. At about 4.20 into the video posted after the break, we see the usual panning and gesture controls already available in Vista on what looks to be HP's TouchSmart PC. We then learn that Microsoft's goal is to enable "most applications," out of the box with simple (think: pinch to zoom) multi-touch on day one of the Windows 7 launch. Individual apps can then be optimized to improve performance and offer a greater degree of touch and multi-touch control. As demonstrated in the video, finger flicks applied to Microsoft's optimized Internet Explorer send the scroll whizzing away compared with an un-optimized MS Word document (shown in a zooming gesture above) while gentle upward swipes to Windows 7 taskbar icons expose jump lists normally requiring a right mouse click. Interesting.